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Business Managment 3/4 > AOS1 Q > Flashcards

AOS1 Q Flashcards

1
Q

Advantages of sole trader (6)

A 
simple and inexpensive to set up
Owner has complete control
No disputes with partners 
Less costly to operate 
Owner right to keep profit
Less government regulation
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2
Q

Disadvantage of sole trader

A 
unlimited liability 
End of business when owner dies
Can't operate if sick
Need carry losses
Difficult for expansion
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3
Q

What are the two types of partnerships. Elaborate

A 
general partnership (unlimited liability)
Limited partnerships (silent partners, financial support)
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4
Q

Advantages of partnership

A 
simple and inexpensive to setup 
Workload can be shared between partners
Risk/debt shared amongst partners 
May be easier to take time off
Easier to raise capital
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5
Q

Disadvantages of partnership

A

unlimited liability
Potential disagreement
Liability for debt incurred by other partners
Difficult to find suitable partner

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6
Q

What is a sole trader business (3)

A

one person who owns and runs the business
The individual and the business have the same entity
Therefore unlimited liability (responsible to pay off debt

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7
Q

What is a partnership

A

A business owned by a minimum of 2 or a maximum of 20 people

Not separate legal entity from the partners.

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8
Q

What is a public listed company (3)

A

company where shares of the business are for sale in an open market (ASX)
Limited liability
Have limited or “Ltd” behind name

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9
Q

Advantage of public limited company (2)

A

limited liability

Easy to raise capital (money) by selling more shares

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10
Q

Disadvantage of public limited company (4)

A

highly complex and time consuming to establish
High cost to establish
More accountability and compliance
Possible loss of control

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11
Q

What is a private listed company eg.

A

An incorporated business with a minimum of two and a maximum of 50 private shareholders, and whose shares are offered only to those people whom the business wishes to have as part owners
Visy

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12
Q

What is social enterprise (3)

A

a business that produces goods and services for the market, but operates with the primary objective of fulfilling a social need eg salvos
The business may make a profit however, the business will continue to work towards goals
Can take form of a charity, a cooperative of privately owned business.

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13
Q

Advantages of social enterprise (2)

A

Can open up new markets

Meeting a social need can have a positive effect on profit and market share

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14
Q

Disadvantage of social enterprise (2)

A

Difficult to obtain capital to start the business
Significant operating costs
Can be difficult to focus on both social and financial objectives

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15
Q

What is a government business enterprise (2)

A

A type of business that is government owned and operated

Like companies, they participate in commercial activities with the goal of making a profit

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16
Q

Advantages of government enterprise (3)

A

able to carry out government policies delivering community services in areas where private sector businesses might hesitate to invest
Can operate with some independence from government
Provision of healthy competition to businesses in the private sector - can lead to low prices in the market

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17
Q

Types of objectives

A 
To make a profit 
To increase market share 
To fulfil a social need 
To fulfil a market need 
To meet shareholders expectations
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18
Q

What is an objective (2)

A

desired goal, outcome or specific result that an organisation intends to achieve
Gives an organisation direction, providing a path to follow

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19
Q

What is a vision statement

A

States what the business aspires to become

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20
Q

What is a mission statement

A

expresses why the business exists, its purpose and how it will operate

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21
Q

What does it mean to fulfil the market need (3)

A

opening a gap in the market
Feeding the target market
Identifying what the target market requires to allow you to meet their needs and build a market for your goods and services

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22
Q

Types of performance indicators (10)

A 
net profit
Number of sales
Rate of productivity growth
Customer satisfaction 
Staff satisfaction 
Staff turnover
Level of wastage 
Number of complaints
Number of workplace accidents
Market share
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23
Q

What is a stakeholder

A

groups and individuals who interact with the business and have a vested interest in its activities

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24
Q

Difference between internal and external stakeholders

A

Internal stakeholders are those are part of the business while external are those who interact with the business but are not part of it

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25
Example of internal stakeholders (5)
``` owners shareholders directors management employees ```
26
Example of external stakeholders 4()
``` Government Competitors Interest groups (unions, consumer goups, specific issue groups) Customers suppliers Members of the community ```
27
What is corporate social responsibility
The obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment
28
The areas of responsibility
``` Operations Finance Sales and marketing Human recourses technology support ```
29
What is operations responsible for
This area is responsible for the production of a business’s products. It oversees the transformation of inputs into the finished product
30
What is the area of finance responsible for
This area is responsible for managing the financial aspect of the business. This can include developing financial policies, raising finance, budgeting, accounting, reporting and cash control
31
What is the area of human recourses responsible for
Responsible for co-ordinating all the activities involved from acquiring to terminating employees of the business. They also manage the relationship between the employer and employees
32
What is sales and marketing responsabile for
Responsible for the marketing mix known as the 7 p’s. (product, promotion, price, place, people, physical evidence and process
33
What is technology support responsible for
This area is responsible for installing and maintaining technology as well as providing assistance to the users of technology in the business
34
7 p's of sales and marketing
``` product, promotion, price, place, people, physical evidence process ```
35
List of management styles
``` Autocratic Persuasive Consultative Participative Laissez-faire ```
36
Autocratic management style (4)
manager tells staff wha decisions have been made One way communication Controlling Frequent checking
37
Advantages of autocratic style, (4)
Directions and procedures are clearly defined Employees roles are set out plainly, managers can assess performance Control is centred at top management Time efficient
38
Disadvantages of autocratic management style (3)
Less ideas circulating the business Employees job satisfaction decreases as no responsibilities are given Conflicts between employees trying to satisfy managers
39
The persuasive management style (3)
Like autocratic, manager tells staff, but also tries to convince them that it's the right decision One way communication Adding a why and because
40
Advantages of the persuasive management style (4)
Managers can gain some trust in ideas Employees feel that their feelings are being considered Instructions remain clear Some acceptance of negative situations
41
Disadvantage of the persuasive management style (3)
Attitudes and trust can remain negative Discussion is still poor Employees remain frustrated as they are denied dull participation
42
Consultative management style ()3
seeks employee ideas and input before making decisions Two way communication Manager still makes final decision
43
Advantage of consultative management style ()3
Greater variety of ideas Employees feel that they have ownership in the way the business is run, increase job satisfaction Task completed more efficiently due to discussion
44
Disadvantages of the consultative management style (3)
Slow performance due to time taken to discuss Some issues are not suitable for wide spread consultation When number of ideas are shared some are overlooked decreases happiness of certain employees
45
Participative management style (3)
Manager unites with staff to make the decision together Managers recognise strengths and abilities of staff and include them in decision making Two way communication
46
Advantages of participative management style (3)
positive relationships between employees and employer. employees more likely to accept management decisions. increase job satisfaction as employees feel that they have played active role in allocating tasks and implementing objectives
47
Disadvantages of the participative management style (4)
Long process of decision making Lowered control of managers Internal conflict may arise with vast majority of ideas Not all employees want to contribute
48
Laissez faire management style (3)
employees assume total responsibility for, and control of, workplace operations Employees feel a sense of ownership Open two way communication
49
Advantages of the laissez faire management style (3)
employees feel sense of ownership, which can promote outstanding results dynamic working environment due to encouragement of creativity open communication
50
Disadvantages of the laissez faire management style (3)
complete loss of control by managers which can lead to misuse of resources conflicts between employees not cooperating focus on meeting business objectives can be easily eroded
51
What's the relationship between management styles and skills (2)
the type of management style that a manager users will tend to effect which skills they use stronger than others also the managers stronger skills will tend to have a stronger influence over what style they should chose to use
52
Management skill communicating (2)
Involves the ability to transfer information from a sender to receiver, and listen to feedback. Can be verbal and non-verbal
53
Management skill delegation(2)
Refers to the ability to transfer authority from a manager to an employee to carry out specific activities. It can lead to fresh ideas and improvements in employee motivation
54
Management skill planning
The ability to define business objectives and decide on the methods or strategies to achieve them
55
What are the levels of planning (3)
Strategic- long term planning, usually over 2-5 years Tactical-flexible, adaptable, medium term planning usualy over 1-2 years and assists in the implementing of the strategic plan Operational-provides specific details about the way in which the business will operate in the short term
56
What is the planning process (5)
``` Define the objective Analyse the environment (SWOT analysis) Develop alternative strategies Implement an alternative Monitor and seek feedback on the implemented strategy ```
57
The management skill of leading (3)
The ability to influence or motivate people to work towards the achievement of business objectives
58
The management skills of decision making
The ability to identify the options available and then chose a specific course of action from the alternatives
59
The decision making steps (5)
``` Develop objectives and criteria Outline the facts Identify alternative solutions Analyse the alternatives Chose one alternative and implement ```
60
What are the interpersonal skills (3)
Ability to deal or liaise with people and build positive relationships with staff How to best get along with staff to achieve objectives Genuine concern for interests
61
What is corporate culture
Refers to the values, ideas, expectations and beliefs shared by members of the business
62
What is official corporate culture (3
Policies, objectives or slogans of the business
63
What is the real corporate culture (2) eg
``` Informal rules (unwritten) that guide how people behave in the business. E.G. staff dress, language staff use, how staff treat each other and customers ```
64
What are the the elements of corporate culture (4(
Values and practices Symbols Rituals, rites and celebrations Heroes (successful employees)
65
Parts of developing corporate culture (2)
It is important to have positive corporate culture as it makes the workplace more positive which can lead to more success Management is able to build on this by extending the four essential elements
66
Types of leaders And what they do
``` Transactions leaders (provide staff with rewards) Transformational (inspires staff) ```

Business Managment 3/4 (9 decks)

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